This is talking about fixed whole life insurance, not incremental whole life insurance.
What is the difference, it also provides lifelong death total disability protection, the sum insured of fixed whole life insurance is fixed, the insured amount of 1 million, no matter when you die, the compensation is 1 million, and the death leverage is relatively high. The sum insured of increased whole life insurance is increasing year by year, and the death leverage in the early stage is not high, and after a certain period of time, it is equivalent to the cash value.
Another difference is that the cash value of fixed whole life insurance is relatively low, and it will take a long time for the cash value to exceed the premium paid, leaving you with "no money to use", while increasing the amount of whole life insurance, as we all know, the cash value quickly exceeds the premium paid, and then it can be flexibly accessed through policy reduction.
There is a big difference between fixed whole life insurance and incremental whole life insurance, and it is suitable for different people.
Fixed-amount whole life insurance is suitable for people
Increase the amount of whole life insurance, spare money does not know where to put it, you can invest in it, 20 years of simple interest of more than 3.5%, 30 years of simple interest of more than 4%, many products can be done, against the downward trend of interest rates!
Fixed amount whole life insurance is mainly suitable for the following 3 types of people:
1. People who want to use insurance to achieve directional inheritance of wealth
After the death of a hundred years, the designated person (spouse, parents, children) receives a death benefit, which belongs to the personal property of the beneficiary, and multiple people can be designated, avoiding possible inheritance disputes.
For example: Zhang San has a son and a daughter, and they are all married, Zhang San wants to give the property and only to his children, you can make a will to distribute, you can also insure yourself with a whole life insurance, the amount of insurance is 10 million, and the two children are designated as beneficiaries, each accounting for 50%, after Zhang San's death, his children can receive 5 million death compensation, this money belongs to the personal property of Zhang San's children, and there is no need to worry about being divided in the future.
2. The breadwinner of the family who wants to obtain lifelong death benefits
Term life insurance also protects the death of total disability, but only for a period of time, up to 80 years old, if you feel that the time is short, you can consider whole life insurance, for a lifetime, because people are born to die, whole life insurance will pay 100%. Of course, with the same sum insured, whole life insurance is definitely more expensive than term life insurance.
3. People who want to connect with trust services
The total premium of fixed whole life insurance reaches a certain scale, and many products can be connected to trust services, and the death benefit is given to the trust company, which will be given to the children in batches according to the conditions, so as to avoid the one-time squandering of the inheritance and give the children long-term life protection.
Trusts often appear in the gossip of wealthy families or celebrities. For example, Anita Mui set up a family trust fund before her death, with HSBC Trust as the trustee, and the beneficiary arrangements included: setting aside HK$1.6 million for her nephew and niece as education funds, and paying HK$70,000 per month to Mui's mother for living expenses until her death.
The threshold for the establishment of family trusts is very high, which is difficult for ordinary people to reach, and the threshold for insurance trusts is relatively low, and some fixed whole life insurance premiums can be docked when they reach 2 million.
Fixed Whole Life Insurance Product Recommendation
After a brief understanding of fixed whole life insurance, we will make a product recommendation for you.
1. Enjoy a lifetime (Celebration Edition)
Liability:
- Total Disability on Death: MAX (accumulated premium, cash value) before age 18, 100% of the sum insured after age 18
- Accidental death: 18-71 years old, an additional 10% of the sum insured
- Accidental death of rail public transportation: 18-71 years old, an additional 100% of the sum insured will be paid
- Aviation Accident Death: 18-71 years old, an additional 200% of the sum insured
Other benefits: can be connected to a universal account, death benefit can be paid in installments, only 6 exemption clauses, relatively few
Premium Calculation:
The insured amount is 1 million, guaranteed for life, and paid for 20 years
16,740/year for 30-year-old men and 14,430/year for 30-year-old women.
The items that will not be compensated for the Joy of Life (Celebration Edition) are as follows:
2. Sino-Dutch Glory Family Whole Life Insurance
Liability:
- Total Disability on Death: 100% of the sum insured
- Accidental death of rail public transportation: 18-71 years old, an additional 50% of the sum insured;
- Aviation Accident Death: 18-71 years old, 100% of the sum insured will be paid
Other rights and interests: support for insurance reduction, only 3 liability exemptions (2 additional articles), which is relatively small
Premium Calculation:
The insured amount is 1 million, guaranteed for life, and paid for 20 years
15,110/year for 30-year-old men and 13,180/year for 30-year-old women.
The matters that are not covered by Sino-Dutch Glory Family Whole Life Insurance are as follows:
3. Centennial cherishing eternal whole life insurance
Liability:
- 100% of the sum insured for total disability in death;
- If the age of 18-71 dies due to an accident, an additional 20% of the sum insured will be paid.
Other rights and interests: support for insurance reduction, insurance trust can be connected to the premium of 2 million, pension community can be connected, and universal account can be attached
Premium Calculation:
The insured amount is 1 million, guaranteed for life, and paid for 20 years
15,480/year for 30-year-old men and 13,410/year for 30-year-old women.
Centennial Forever Whole Life Insurance does not cover the following items, which are relatively more:
Fixed whole life insurance, also known as leveraged life, has relatively high protection leverage, and there are relatively few product choices on the market.
If you have a need for asset directional inheritance, or want to connect with an insurance trust with a low threshold, whole life insurance is a very good choice.
In 2024, it's a pleasure to meet you!